First US-South Korea Defense Cost-Sharing Talks Since US Election: "Fairness and Mutual Acceptance, Cooperation for Prompt Agreement" (Comprehensive)

'Significant Increase' Demanded by Trump Causes 12-Month Gap in Defense Cost-Sharing Agreement... Prolonged Deadlock in Negotiations
Expectations for Resolution Since Biden Administration Inauguration

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] Regarding the Special Measures Agreement (SMA) on defense cost-sharing between South Korea and the United States, which has been in a state of agreement lapse for 12 months, the South Korean and U.S. delegations held their first virtual consultation since the U.S. presidential election and agreed to cooperate for a swift resolution. The delegations reaffirmed the principle of a fair and mutually acceptable agreement, but the possibility of a dramatic settlement before the administration change in January next year appears low.

According to the Ministry of Foreign Affairs on the 1st, the South Korean and U.S. delegations held a virtual consultation on the 30th to review the status of the 11th SMA negotiations. Jeong Eun-bo, South Korea’s Special Representative for Defense Cost-Sharing Negotiations, and Donna Welton, U.S. State Department’s Special Representative for Defense Cost-Sharing Negotiations, agreed to closely cooperate to promptly reach a fair and mutually acceptable agreement.

In addition to the chief negotiators from both sides, officials from South Korea’s Ministry of Foreign Affairs and Ministry of National Defense, as well as from the U.S. State Department and Department of Defense, participated in the consultation. The meeting was held to assess the current situation and share perceptions amid a prolonged negotiation hiatus.

The 11th SMA negotiations began in September last year but have yet to reach a final agreement. This means the agreement has been in a lapse state for 12 months. The last meeting was the 7th session held in March. Notably, the delegations had tentatively agreed on a 13% increase compared to last year’s contribution, but the deal was not finalized due to former President Trump’s rejection. After the change of the U.S. representative, the negotiations fell into a long-term deadlock.

Although the two countries have communicated via phone or email during this period, this is the first time the diplomatic authorities have publicly announced the virtual consultation since the U.S. presidential election. However, since this consultation only reaffirmed existing working principles, a dramatic settlement before the inauguration of the Joe Biden administration in January next year seems unlikely. The diplomatic community believes visible negotiations will only be possible after the new administration takes office.

Experts predict that the negotiation situation will improve under the Biden administration, which emphasizes alliance strengthening, given that the defense cost-sharing talks were stalled due to former President Trump’s obstinacy. The announcement of this diplomatic consultation is also analyzed as reflecting such expectations.

Earlier last month, the U.S. House of Representatives unanimously adopted a resolution to strengthen the South Korea-U.S. alliance, which also stipulated that the defense cost-sharing agreement should be concluded as a multi-year deal containing mutually acceptable terms. The resolution by Democratic Representative Tom Suozzi, titled "Recognizing the Importance of the South Korea-U.S. Alliance and the Contributions of Korean Americans," included the content that the SMA should be concluded as a multi-year agreement with mutually acceptable terms. Similarly, a joint resolution by Democratic Representative Ami Bera and Republican Representative Ted Yoho called for ‘SMA negotiations under mutually agreeable conditions.’

[Image source=Yonhap News]

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